China’s industrial profits growth in July slowed to its weakest pace this year, expanding 11.2% from a year earlier, according to National Bureau of Statistics data on Thursday.

For the first seven months of this year, profits climbed 17.6% from a year earlier, losing momentum following the 18.7% rate in the first half-year. The survey covers firms with annual revenues of over 20 million yuan ($2.9 million) from their core operations.

Industrial corporate profitability has seen a notable turnaround, swinging from years of declines since 2021 and barely positive growth last year, to double-digit gains this year. That recovery was largely helped by a global artificial intelligence boom that fueled demand for computing and electronics equipment manufacturing. (CNBC – Continue Reading)

Bank of Japan Deputy Governor Ryozo Himino said on Thursday raising interest rates in a timely manner will help avoid a spike in inflation that would require abrupt rate hikes in the future.

"If underlying inflation deviates above our 2% target, that would have an adverse impact on the economy. We should pay greater attention to upside ⁠risks to prices than in the past," Himino said in a speech to business leaders. "In-depth deliberations should be held at each monetary policy meeting with these perspectives in mind," he said.

Himino said adjusting still-loose financial conditions through rate hikes would help distribute assets more efficiently to investment with growth potential. (RTRS – Continue Reading)

Australia’s hot inflation spurred economists from Goldman Sachs Group Inc. to Commonwealth Bank to predict another interest-rate increase as early as next month, abandoning expectations of no change for the remainder of the year.

The turnaround follows Wednesday’s inflation report showing price pressures remain elevated and came after minutes of the RBA’s August meeting indicated the rate-setting board has low tolerance for higher consumer prices. (BBG – Continue Reading)